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Satluj Jal Vidyut Nigam, a hydropower producing company of India, is to construct the Lower Arun Hydropower Project in Nepal. A bilateral agreement was made to this regard during the visit of Prime Minister Pushpa Kamal Dahal to India today. The company has also been constructing the Arun-III Hydropower Project. The project development agreement (PDA) was signed between Nepal and India in the presence of the Prime Minister Pushpa Kamal Dahal and his Indian counterpart Narendra Modi amidst a function in New Delhi. Chief Executive Officer from Investment Board Sushil Bhatta and Chairman of Satluj Company Nanda Lal Sharma signed the PDA from the respective sides. The 54th meeting of the Investment Board on May 28 chaired by Prime Minister Dahal had taken a decision on necessary homework on PDA. The meeting approved the draft document on PDA to be made with the developer company and forwarded to the Council of Ministers for approval. The Cabinet meeting later endorsed the PDA. The entire power produced from the project will be exported, which is believed to contribute to the economic development of the country. The Investment Board had approved the investment of Rs 92.68 billion for the 669-MW capacity project.  

The Nepal Stock Exchange (NEPSE) gained 16. 54 points to close at 1,866.34 points on Thursday. Similarly, the sensitive index surged by 2. 19 points to close at 355. 62 points. A total of 6,128,621-unit shares of 272 companies were traded for Rs 1. 65 billion. Meanwhile, Joshi Hydropower Development Company Ltd was the top gainer today with its price surging by 6. 94 percent. Likewise, Sunrise Focused Equity Fund was the top loser with its price dropping by 6. 00 percent. At the end of the day, the total market capitalization stood at Rs 2. 72 trillion.

The government and the World Bank on Wednesday signed a financing agreement for a $120 million concessional loan from the International Development Association and a grant agreement for $19.7 million from the Global Partnership for Education for the School Sector Transformation Program (SSTP) Operation, which support the implementation of the government’s flagship School Education Sector Plan. The agreement was signed by Arjun Prasad Pokharel, Finance Secretary, and Faris Hadad-Zervos, the World Bank Country Director for Maldives, Nepal, and Sri Lanka. The World Bank in a press statement said the SSTP operation focuses on improving foundational skills by implementing the national integrated curriculum in early grades. According to statement, the operation supports the government’s program through the development and implementation of the Recovery and Accelerated Learning Plan to address learning losses as a result of school closures due to the Covid-19 pandemic and other disasters, strengthening teaching and learning in the classrooms, construction of green and resilient classrooms, ensuring minimum enabling conditions such as qualified teacher, child-friendly taps and seating, and toilets in the early childhood education development centers, and strengthening digital teaching and learning materials, among others. "The operation also envisions improving the equity of the school sector by supporting girls, disabled students, and those of lower socio-economic status, through targeted scholarship programs," reads the statement. “We are hopeful that the reform agenda envisioned in the School Sector Transformation Program will be instrumental in increasing equitable access and improving the quality of education, which are critical for human capital development,” said Pokharel. Speaking on the occasion, Hadad-Zervos of the World Bank said the School Sector Transformation Program operation supports the Government of Nepal’s Green, Resilient, and Inclusive Development (GRID) agenda by investing in quality and equitable access to education, which is key to developing human capital and fostering inclusive and resilient growth.

Nepal Association of Tour and Travel Agents (NATTA) has raised concerns over the decision to impose 13 percent value added tax (VAT) on air-travel tickets for visits abroad and demanded its withdrawal. The government in the budget for the upcoming fiscal 2023-24 announced to levy a 13 percent VAT on air tickets for visits abroad. NATTA, as a representative body of tour and travel agents, believes the imposition of VAT on air tickets for international travel would negatively impact the tourism sector. "The provision of charging a 13 percent additional tax on air tickets for foreign visits makes it challenging to afford international trips when the international travel fare is already expensive and it is capable of affecting the travel and tour business," NATTA Chair Ramesh Thapa said in a press statement today. He said the decision to levy additional 13 percent VAT on air tickets for foreign travel is applied when its process is made from Nepal and it is not charged while proceeding for tickets from abroad. "The domestic tour and travel business is certain to be marred by the decision when it is struggling to make through a post-COVID-19 situation. The decision hampers recovery efforts after the pandemic." Thapa further argued the decision to impose an additional two percent luxury tax on services of high-end hotels and restaurants was not expected at all. However, NATTA welcomed the government decision to observe the period from 2023-2032 as a visiting year. The priorities to the constructions of the Nijgadh Airport, other airports, revival of cultural heritages, identification on new touristic destinations and acceleration of infrastructure development are other positive aspects of the budget. The decision to allocate an additional over 2.5 billion budgets to the tourism sector than in the current fiscal year encourages the related community.